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Tax efficient gift giving
21 December 2011
Giving to your team
- Christmas celebrations at your work on a working day are likely to be exempt from FBT.
- Keep the cost of celebrations below $300 per person to ensure the event is a minor benefit for FBT purposes and exempt from FBT (including meals, beverages, entertainment, etc.,).
- Keep any Christmas presents below $300 per person and ensure they are ‘one-off’ gifts. They need to be ad-hoc to be exempt from FBT.
- You can’t deduct the cost of your Christmas celebrations for team members unless FBT applies.
- Entertaining your clients at Christmas is not tax deductible. Sorry.
- Give a gift instead – gifts are deductible as long as the gift is given by the business with the expectation that the business will benefit (i.e., the gift is given with the expectation of generating revenue).
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The material and contents provided on this website and in our print, email or downloadable publications are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained. Liability limited by a scheme approved under Professional Standard Legislation.
